Cineworld Prepares To Declare Bankruptcy After Pandemic Cineworld

The London-listed company, which is more than $4.8bn (£4bn) in debt after losses soared while cinemas were closed during the global coronavirus crisis, has hired lawyers from Kirkland & Ellis and consultants from restructuring specialists AlixPartners to advise on the process. The company, which operates 751 locations in 10 countries, including the Cineworld and Picturehouse chains in the UK, is expected to file for Chapter 11 in the US and is considering insolvency proceedings in the UK, according to the Wall Street Journal. Cineworld’s already battered share price crumpled from 20p to 2p after the report. Before the pandemic it was trading at £1.97. The move follows Cineworld’s market value more than halving on Wednesday after the company said it had started talks with stakeholders over a financial rescue package, blaming a lack of blockbuster films for lower-than-expected receipts. The group said it was in “active discussions with various stakeholders” and was evaluating strategic options to obtain additional liquidity and potentially restructure its balance sheet to reduce debt. “Any deleveraging transaction would likely result in a very significant dilution of existing equity holdings in Cineworld,” he warned. Investors reacting to the news sent the company’s market value below £50m on Friday, having been valued at £4.4bn before the pandemic devastated the live cinema industry. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. On Wednesday, the chain said its business operations are expected to remain unaffected by its move to pursue financial stability and that it “expects to continue to meet ongoing counterparty business obligations.” Cineworld, which faces a payment of almost $1 billion to pull out of a deal to buy Canadian rival Cineplex, reported an annual increase in net debt to $4.8 billion a year at the end of 2021. The group made a loss of $708 million last year. However, revenue more than doubled from $852 million to $1.8 billion, thanks to the latest James Bond and Spider-Man films. In 2020, the company reported a record loss of $3 billion. “The company will blame the lack of summer blockbusters as the reason behind its sharp decline, but in reality its aggressive acquisition plan has taken on too much debt and that was always a huge risk as interest rates rose,” said Walid Koudmani, chief market analyst. at XTB Financial Brokerage. “Furthermore, the move to stay at home entertainment and streaming providers has created a sea change in the way consumers enjoy movies and Cineworld simply has not adapted quickly enough. It is very sad as the UK high street is now likely to lose a popular and familiar brand.” The company received an estimated 95 million viewers in 2021, up 75% from 54 million in 2020, but well below the 275 million watched before the Covid crisis. Cineworld’s situation contrasted sharply with the performance of AMC Entertainment, the world’s biggest cinema group and owner of the Odeon chain in the UK, which said new films Top Gun and Dr Strange had fueled a doubling of ticket sales in USA. . The company, which has a market value of $12.8 billion, said July had the highest monthly attendance at U.S. theaters since before the pandemic.

title: “Cineworld Prepares To Declare Bankruptcy After Pandemic Cineworld Klmat” ShowToc: true date: “2022-10-28” author: “Jackie Potter”

The London-listed company, which is more than $4.8bn (£4bn) in debt after losses soared while cinemas were closed during the global coronavirus crisis, has hired lawyers from Kirkland & Ellis and consultants from restructuring specialists AlixPartners to advise on the process. The company, which operates 751 locations in 10 countries, including the Cineworld and Picturehouse chains in the UK, is expected to file for Chapter 11 in the US and is considering insolvency proceedings in the UK, according to the Wall Street Journal. Cineworld’s already battered share price crumpled from 20p to 2p after the report. Before the pandemic it was trading at £1.97. The move follows Cineworld’s market value more than halving on Wednesday after the company said it had started talks with stakeholders over a financial rescue package, blaming a lack of blockbuster films for lower-than-expected receipts. The group said it was in “active discussions with various stakeholders” and was evaluating strategic options to obtain additional liquidity and potentially restructure its balance sheet to reduce debt. “Any deleveraging transaction would likely result in a very significant dilution of existing equity holdings in Cineworld,” he warned. Investors reacting to the news sent the company’s market value below £50m on Friday, having been valued at £4.4bn before the pandemic devastated the live cinema industry. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. On Wednesday, the chain said its business operations are expected to remain unaffected by its move to pursue financial stability and that it “expects to continue to meet ongoing counterparty business obligations.” Cineworld, which faces a payment of almost $1 billion to pull out of a deal to buy Canadian rival Cineplex, reported an annual increase in net debt to $4.8 billion a year at the end of 2021. The group made a loss of $708 million last year. However, revenue more than doubled from $852 million to $1.8 billion, thanks to the latest James Bond and Spider-Man films. In 2020, the company reported a record loss of $3 billion. “The company will blame the lack of summer blockbusters as the reason behind its sharp decline, but in reality its aggressive acquisition plan has taken on too much debt and that was always a huge risk as interest rates rose,” said Walid Koudmani, chief market analyst. at XTB Financial Brokerage. “Furthermore, the move to stay at home entertainment and streaming providers has created a sea change in the way consumers enjoy movies and Cineworld simply has not adapted quickly enough. It is very sad as the UK high street is now likely to lose a popular and familiar brand.” The company received an estimated 95 million viewers in 2021, up 75% from 54 million in 2020, but well below the 275 million watched before the Covid crisis. Cineworld’s situation contrasted sharply with the performance of AMC Entertainment, the world’s biggest cinema group and owner of the Odeon chain in the UK, which said new films Top Gun and Dr Strange had fueled a doubling of ticket sales in USA. . The company, which has a market value of $12.8 billion, said July had the highest monthly attendance at U.S. theaters since before the pandemic.

title: “Cineworld Prepares To Declare Bankruptcy After Pandemic Cineworld Klmat” ShowToc: true date: “2022-11-20” author: “Diana Sartain”

The London-listed company, which is more than $4.8bn (£4bn) in debt after losses soared while cinemas were closed during the global coronavirus crisis, has hired lawyers from Kirkland & Ellis and consultants from restructuring specialists AlixPartners to advise on the process. The company, which operates 751 locations in 10 countries, including the Cineworld and Picturehouse chains in the UK, is expected to file for Chapter 11 in the US and is considering insolvency proceedings in the UK, according to the Wall Street Journal. Cineworld’s already battered share price crumpled from 20p to 2p after the report. Before the pandemic it was trading at £1.97. The move follows Cineworld’s market value more than halving on Wednesday after the company said it had started talks with stakeholders over a financial rescue package, blaming a lack of blockbuster films for lower-than-expected receipts. The group said it was in “active discussions with various stakeholders” and was evaluating strategic options to obtain additional liquidity and potentially restructure its balance sheet to reduce debt. “Any deleveraging transaction would likely result in a very significant dilution of existing equity holdings in Cineworld,” he warned. Investors reacting to the news sent the company’s market value below £50m on Friday, having been valued at £4.4bn before the pandemic devastated the live cinema industry. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. On Wednesday, the chain said its business operations are expected to remain unaffected by its move to pursue financial stability and that it “expects to continue to meet ongoing counterparty business obligations.” Cineworld, which faces a payment of almost $1 billion to pull out of a deal to buy Canadian rival Cineplex, reported an annual increase in net debt to $4.8 billion a year at the end of 2021. The group made a loss of $708 million last year. However, revenue more than doubled from $852 million to $1.8 billion, thanks to the latest James Bond and Spider-Man films. In 2020, the company reported a record loss of $3 billion. “The company will blame the lack of summer blockbusters as the reason behind its sharp decline, but in reality its aggressive acquisition plan has taken on too much debt and that was always a huge risk as interest rates rose,” said Walid Koudmani, chief market analyst. at XTB Financial Brokerage. “Furthermore, the move to stay at home entertainment and streaming providers has created a sea change in the way consumers enjoy movies and Cineworld simply has not adapted quickly enough. It is very sad as the UK high street is now likely to lose a popular and familiar brand.” The company received an estimated 95 million viewers in 2021, up 75% from 54 million in 2020, but well below the 275 million watched before the Covid crisis. Cineworld’s situation contrasted sharply with the performance of AMC Entertainment, the world’s biggest cinema group and owner of the Odeon chain in the UK, which said new films Top Gun and Dr Strange had fueled a doubling of ticket sales in USA. . The company, which has a market value of $12.8 billion, said July had the highest monthly attendance at U.S. theaters since before the pandemic.

title: “Cineworld Prepares To Declare Bankruptcy After Pandemic Cineworld Klmat” ShowToc: true date: “2022-10-22” author: “Misty Minnis”

The London-listed company, which is more than $4.8bn (£4bn) in debt after losses soared while cinemas were closed during the global coronavirus crisis, has hired lawyers from Kirkland & Ellis and consultants from restructuring specialists AlixPartners to advise on the process. The company, which operates 751 locations in 10 countries, including the Cineworld and Picturehouse chains in the UK, is expected to file for Chapter 11 in the US and is considering insolvency proceedings in the UK, according to the Wall Street Journal. Cineworld’s already battered share price crumpled from 20p to 2p after the report. Before the pandemic it was trading at £1.97. The move follows Cineworld’s market value more than halving on Wednesday after the company said it had started talks with stakeholders over a financial rescue package, blaming a lack of blockbuster films for lower-than-expected receipts. The group said it was in “active discussions with various stakeholders” and was evaluating strategic options to obtain additional liquidity and potentially restructure its balance sheet to reduce debt. “Any deleveraging transaction would likely result in a very significant dilution of existing equity holdings in Cineworld,” he warned. Investors reacting to the news sent the company’s market value below £50m on Friday, having been valued at £4.4bn before the pandemic devastated the live cinema industry. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. On Wednesday, the chain said its business operations are expected to remain unaffected by its move to pursue financial stability and that it “expects to continue to meet ongoing counterparty business obligations.” Cineworld, which faces a payment of almost $1 billion to pull out of a deal to buy Canadian rival Cineplex, reported an annual increase in net debt to $4.8 billion a year at the end of 2021. The group made a loss of $708 million last year. However, revenue more than doubled from $852 million to $1.8 billion, thanks to the latest James Bond and Spider-Man films. In 2020, the company reported a record loss of $3 billion. “The company will blame the lack of summer blockbusters as the reason behind its sharp decline, but in reality its aggressive acquisition plan has taken on too much debt and that was always a huge risk as interest rates rose,” said Walid Koudmani, chief market analyst. at XTB Financial Brokerage. “Furthermore, the move to stay at home entertainment and streaming providers has created a sea change in the way consumers enjoy movies and Cineworld simply has not adapted quickly enough. It is very sad as the UK high street is now likely to lose a popular and familiar brand.” The company received an estimated 95 million viewers in 2021, up 75% from 54 million in 2020, but well below the 275 million watched before the Covid crisis. Cineworld’s situation contrasted sharply with the performance of AMC Entertainment, the world’s biggest cinema group and owner of the Odeon chain in the UK, which said new films Top Gun and Dr Strange had fueled a doubling of ticket sales in USA. . The company, which has a market value of $12.8 billion, said July had the highest monthly attendance at U.S. theaters since before the pandemic.